Prospectors and squatters first started to filter into the Whangamata area after the gold strikes in Thames and Waihi, in the mid 1800's, but the Government did not officially open the area for gold mining, logging and gum digging until 1873.

The town, as gazetted on 20 February, 1873, consisted of 43 acres, divided into 20 lots, within what is now Harbourview Road, Beach Road and Port Road. (Map of Town)

The 1890's to 1920's saw intense activity as gold mining in the Wentworth, Wharekawa and Parakawai Valleys developed establishing settlements of several hundred people.

At the head of the Whangamata Harbour lies the Otahu Estuary. In Pre-European times there were several Maori Pas on both sides of the river. Otahu means 'beacon' and on the far point a watch was kept and a fire lit to warn all Pas when marauding canoes were sighted.

Until the clay road was built in the mid 1920's the Otahu Estuary was used at low tide to travel to and from Waihi.